Tianjin Residential

Asian Cities

1H 2017

Economic overviewTianjin has experienced accelerated economic development in recent years, with the city’s GDP growth rate among the highest in the country. While the city’s economy has been affected by the slowdown of the broader Chinese economy since 2011, it continues to outperform the national average. In 2016, Tianjin’s GDP reached RMB1.79 trillion, an annual growth rate of 9.0%. The city’s quickly growing economy has ensured the sustainable and healthy development of the local real estate market. Encouraged by strong economic growth, real estate investment in the city increased to RMB230 billion in 2016, an increase of 22.9% year-on-year (YoY).

The “loosening first, tightening later” policyNew policies deregulating the real estate market came into effect in the first half of 2016. Policies such as a reduction in the minimum down payment requirement for home purchases, an increase of the Housing Fund deposit rate, and a reduction of reserve requirements and taxes, helped to increase residential transaction volumes and facilitate the destocking of existing supply.